CSE dips sharply as bearish sentiment persists

Wednesday, 26 February 2025 00:02 - - {{hitsCtrl.values.hits}}

The Colombo stock market yesterday fell sharply extending the bearish run though turnover was relatively low.

The active S&P SL20 declined by 2% and the benchmark ASPI by 1.9%. Turnover was Rs. 2.3 billion involving 135 million shares.

First Capital said the Colombo Bourse saw a further continuation of the selling and profit-taking sentiment that prevailed over the last couple of days. The ASPI dwindled by 327 points and as the index spiralled down from the early hours of trading. While there were signs of a meagre recovery around midday, the downward trend continued to assert dominance as the day progressed.

Similar to Monday, Banking sector counters continued to exert adverse pressure on the ASPI with COMB and HNB standing among the top negative contributors. CINS emerged as the top negative contributor to the index with MELS and LOLC also diffusing noteworthy adverse pressure. Positive contributors remained weak in both number and intensity with GUAR and RIL being the only significant ones.

In terms of contributions to turnover, the Banking sector took the lead with a contribution of nearly 30%. This was followed by Capital Goods, and the Food, Beverage and Tobacco sectors, which produced a joint contribution of 35%. Foreign investors were net sellers, and the market registered a total outflow of Rs. 64.4 million.

NDB Securities said high net worth and institutional investor participation was noted in John Keells Holdings, Royal Ceramics and Hatton National Bank. Mixed interest was observed in First Capital Holdings, Sampath Bank and Browns Investments whilst retail interest was noted in Nation Lanka Finance, Waskaduwa Beach Resort and SMB Leasing.

The Banking sector was the top contributor to the market turnover (due to Hatton National Bank and Sampath Bank) whilst the sector index lost 2.29%. The share price of Hatton National Bank decreased by Rs. 9 to Rs. 318.50. The share price of Sampath Bank recorded a loss of Rs. 1.25 to Rs. 120.50.

The Capital Goods sector was the second highest contributor to the market turnover (due to John Keells Holdings) whilst the sector index decreased by 1.70%. The share price of John Keells Holdings lost 30 cents to Rs. 21.90.

First Capital Holdings and Browns Investments were also included amongst the top turnover contributors. The share price of First Capital Holdings moved down by one Rupee to Rs. 44.80. The share price of Browns Investments declined 20 cents to Rs. 7.90.

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